18
Jun
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Verizon subscribers: say goodbye to unlimited data on that internet hungry Android device of yours. According to Businessweek, Verizon is planning on following AT&T’s lead in replacing unlimited plans in favor of a tiered pricing structure.

In an interview with John Killian, chief financial officer of Verizon, it was clearly suggested that a new pricing structure will have to be put in to place, as data traffic increases with the rollout of 4G in the future.

We will probably need to change the design of our pricing where it will not be totally unlimited, flat rate

Verizon will be conscious of potential strains on their network as more people purchase smartphones and consume more data in the future. The last thing they want is for data speeds to be slow and unreliable, hampering the uptake of their upcoming 4G network.

Killian went on to say how “explosions in traffic” would make it impractical to continue offering unlimited data plans to customers. Whatever the reason behind the decision, it’s unlikely to prove popular with many customers on the network.

What he forgot to mention, however, is that 4G costs mobile operators a fraction of what 3G does to operate.

"Oh, and we have fat pockets", he added (OK, not really).

Source: Businessweek via Gizmodo

John Thompson
John's been addicted to technology ever since he tinkered with his first custom built PC when he was 10 years old. He's also the proud owner of seven Amazon Kindles, but only because he destroyed the first six.

  • ziggy marley

    "make it impractical to continue offering unlimited data plans to customers" Bull. Butter. That's all it is. Bull. The truth is they are finally getting enough data on how much people use it, so they are artificially creating limits that people will come very close to so they can charge them more. That's it and that's all. It's not new, it's old and it's plain as day.

    Oh, it's such a strain on the network to bring 1 poor, measly gigabyte worth of data per month to each user. Bull.

    Bandwidth is soooo cheap. They can bring probably give each user a cap of 1TB for as much as we pay, and they'd still be making money.

    • Mhargy

      You're right; bandwidth itself is cheap to supply. But the tower that operates the bandwidth is not cheap. In fact, Verizon (and every other major US carrier) is up to their eyeballs in debt because of it. The wireless industry is designed to have high ROI to compensate for it. Besides, the shift to tiered data has to do with the future of VoIP...there will be no need for tiered minute plans anymore because all the voice minute plans will be unlimited, while the tiered data will help ration the bandwidth. Right now it's simply reverse b/c of past trends in high demand for minutes, more so than data. As demand shifts to more data for more users, the price rationing will shift to data also. Yes, they could charge us less for it, but then they'd lose their ROI, thus increasing debt. It's not a conspiracy to rip off every possible customer. It's simple economics and growing business. Furthermore, would you pay for unlimited minutes if you didn't need more than 300 mins per month? Tiered data means more and better options for customers who don't need unlimited TBs of data(which is almost everyone out there, unless he/she streams movies nonstop).

  • bcary

    I"m done, I"m not paying any more for a cell phone. I've got the whole app, internet phone thing out of my system. It's not necessary. I"m dumping Verizon and getting the cheapest phone I can find. Just to make phone calls.

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